Tag Archives: trade alerts

CBP Provides Guidance on Generalized System of Preferences Refunds

Wednesday, July 22, 2015

CBP Provides Guidance on Generalized System of Preferences Refunds

The President signed the bill into law on June 29, 2015. Pursuant to Title II of the Trade Preferences Extension Act of 2015 duty-free treatment of GSP-eligible imports (for goods entered or withdrawn from warehouse) will resume effective 30 days after enactment, on July 29, 2015.

There have been a lot of questions surrounding CBP’s plans for refunding duties on the entries eligible for GSP that occurred during the lapse of the program.  As mentioned in an FHK trade alert sent on June 29, 2015, CBP would issue specific instructions about securing refunds for entries made during this time frame.

CBP plans to automatically refund GSP duties paid for eligible goods that were submitted with a GSP claim (entries with the SPI “A”, “A+,” or “A*” as a prefix to the tariff number) during the lapse period – August 1, 2013 through July 28, 2015. Therefore, a request for refund should not be made at the port of entry for any entries previously submitted with the GSP indicator.

For eligible GSP goods that were entered without the GSP indicator (SPI “A”, “A+,” or “A*”) during the lapse, the importer must request the refund in writing. The request must contain sufficient information (including the entry number, the line number, and requested refund) to enable CBP to locate the entry or to reconstruct the entry if it cannot be located. A post-entry amendment (PEA) or post summary correction (PSC) can also be submitted but is not required.

Refund requests must be received by CBP no later than December 28, 2015.

Any amounts owed by the United States pursuant to Public Law 114-27 to the liquidation or re-liquidation of any entry of an article will be paid, without interest.

For more information regarding GSP refunding:


FMC Ruling on Port Congestion Surcharges

Tuesday, November 18, 2014


FMC Ruling on Port Congestion Surcharges


Continuing with the ongoing LA/LB congestion and the concerns of the surcharges being assessed to containers, the FMC has ruled that carriers cannot properly assess any congestion or other surcharges on cargo that was in their possession or control at the time the implementation of the surcharges was in place.  All companies should be aware of this FMC ruling and consult with their own counsel if necessary to determine what position to take at this time. 

“Unless done pursuant to a waiver or exemption, any tariff rule (including surcharges) of a common carrier that results in an increased cost to a shipper may not be effective earlier than 30 days after publication. 46 U.S.C.§ 40501(e) and 46 CFR § 520.8. Many carriers previously published in their tariffs advance or conditional notice of an intention to implement surcharges in the event certain conditions are experienced. All such carrier tariff rules, however, must be clear and definite as to the implementation and termination of the surcharge based upon specific criteria related to “labor unrest.”‘

See the Federal Maritime Commission website for more information:


CBP Reliquidates Deemed Liquidated Entries

Tuesday, July 8, 2014

Reliquidation of “Deemed Liquidated” Entries

Recently, U.S. Customs and Border Protection (CBP) ruled they are entitled to reliquidate deemed liquidated entries 90 days from the date they give notice to the importer, rather than 90 days from the date of deemed liquidation itself.

Once suspension of liquidation is lifted on an antidumping (AD) or countervailing duty (CD) entry, CBP has six months to liquidate entries from the date of publication of the Final Results of Administrative Review issued by the Department of Commerce (DOC).

The ruling involved an AD entry filed by Consolidated Fibers in 2005. At the time of entry the foreign exporter did not have a cash deposit rate that applied to them, therefore the “all others” rate of 7.91% was applied to the entry.   After an administrative review was conducted by the DOC covering the period of 2005, DOC assigned the foreign exporter an AD rate of 48.14%. The Administrative Review of Final Results notice was published on December 10, 2007.

CBP did not liquidate the entry within the six month time period. They discovered in May, 2011, that the entry deemed liquidated on June 10, 2008. On May 6, 2011, CBP posted notice in the Customs house bulletin that the entry deemed liquidated on June 10, 2008, at the 7.91% AD duty rate. Subsequently, CBP reliquidated the entry on July 22, 2011, at the rate of 48.14% assigned by the DOC in their final results notice. The importer protested the reliquidation, but CBP denied the protest on the grounds that the Miscellaneous Trade and Technical Corrections Act of 2004, changed the statute for reliquidation, giving CBP the authority to reliquidate a liquidated entry in accordance with 19 U.S.C. 1504 within 90 days from “the date on which the notice of the original liquidation was given to the importer.” Please refer to HQ ruling H215035 for details.


HQ H215035

ISF Enforcement

Monday, June 2, 2014

 ISF Enforcement Strategy

Last month U.S. Customs and Border Protection (CBP) Headquarters provided updated guidance to the ports regarding ISF enforcement and the issuance of liquidated damages claims. The guidance calls for three warnings to an importer before issuing a claim for ISF noncompliance. CBP states the guidance is to clarify and enhance current ISF enforcement activity. The updated guidance is a result of CBP HQ’s review of claims since July, 2013.

CBP recently issued an addendum to the ISF FAQs to outline the enforcement strategy. To view the new addendum, please follow the link below:


GSP Expiration: Use of Liquidation Extension and Protest

Tuesday, May 20, 2014

FHK is reprinting U.S. Customs and Border Protection’s message #14-000286, dated May 16, 2014, to familiarize our clients with CBP’s stand regarding the upcoming liquidation of GSP entries.

CSMS# 14-000286 – GSP Expiration: Use of Liquidation Extension and Protest

GSP expired July 31, 2013. Importers were advised in CSMS #13-000348 to continue to use SPI “A” to claim GSP but to pay duty subsequent to that date, so that in the event of a retroactive renewal, CBP could process refunds automatically.

CBP advises the trade community that neither requests to extend liquidation under 19 CFR 159.12, nor protest under 19 CFR Part 174, should be used to stop the liquidation of claim potential subject to GSP in anticipation that GSP will be renewed. Assuming that the goods were properly classified and appraised, they should be liquidated as scheduled. CBP does not have the legal authority to further extend liquidation pending possible renewal of GSP.